CIEL FIRST HALF 2015-2016 RESULTS CIEL Half-Year 2016-17 Results Analyst meeting 16 February 2017 1
Agenda 1. Key Figures 2. Highlights 3. Financial Results 4. Clusters Review 5. Focus on CIEL Healthcare 6. CIEL moving forward 2 2
FIRST HALF 2016-2017 KEY FIGURES Good revenue growth and improved profitability for the semester GROUP REVENUE GROUP EBITDA GROUP PROFIT BEFORE NON- RECURRING ITEMS AND TAX COMPANY NET ASSET VALUE PER SHARE 10.04 1.54 942 8.37 MUR BN MUR BN MUR M MUR MUR 9.40 BN - 31 December 2015 MUR 1.38 BN - 31 December 2015 MUR 840 M - 31 December 2015 MUR 8.47 30 June 2016 3
Key Highlights New management structure in place with Group Chief Executive and Group Finance Director SUN Limited 100% operational with improved room inventory Re-opening of Kanuhura (5* Hotel in Maldives) in December MUR 5 billion private placement of bond for Sun Limited Creation of CIEL Agro & Property holding company Acquisition of Apollo Bramwell Hospital s business operations in January 2017 4
FINANCIAL RESULTS
Investment Portfolio 31 December 2016 MUR 13,779M 30 June 2016 MUR 13,940M Share appreciation of Alteo Limited (4%) and The Medical & Surgical Centre (18%) BNI Madagascar and Bank One impacted by lower valuation of ratios 6
Balance Sheet Highlights Group Half-Year ended 31 December 2016 Half-Year ended 30 June 2016 % Total Assets MUR M 61,512 57,284 7% Net Borrowings MUR M 14,621 13,286 29% Gearing Ratio* % 38 36 Net Asset Value per Share MUR 9.13 9.07 1% Company Company Gearing Ratio* % 7.40 7.80 Company Net Asset Value per Share MUR 8.37 8.47-1% Debt/(Debt+Equity) 7
Breakdown of Net Debt CIEL Holding Co. 7% Healthcare 5% Finance 1% Agro & Property 1% Textile 16% MUR 14,621 M Hotels & Resorts 70% 8
Good revenue growth and improved profitability Summarised Group Income Statement Group Half-Year ended 31 December 2016 Half-Year ended 31 December 2015 % Revenue MUR M 10,044 9,401 7% Profit before non-recurring items and tax MUR M 942 840 12% Non-recurring items MUR M (124) (349) n/a Profit after tax MUR M 671 393 71% Profit Attributable to owners of parent MUR M 268 149 80% Earnings per share MUR 0.18 0.10 80% 9
Breakdown of Group revenue by cluster and region 6,000 By cluster By Region For The Half Year To Dec 2016 5,000 Mauritius Africa Asia 4,000 MUR 'M 3,000 2,000 1,000 18% 30% 52% - Textile Hotels and Resorts Finance Agro and Property Healthcare H1 2015-16 H1 2016-17 10
Contribution to EBITDA 1,650 1,600 52 (41) 1,550 1,500 152 10 6 22 1,544 MUR 'M 1,450 1,400 1,379 (36) 1,350 1,300 1,250 1,200 EBITDA H1 2015-16 Textile Hotels & Resorts Finance Agro & Property Healthcare CIEL - Holding Company Group Eliminations EBITDA H1 2016-17 11
Breakdown of Group profits by cluster and by region 500 Group Profit before Non-Recurring Items and Tax by cluster Group profit before non-recurring items and tax by region For the Half Year to Dec 2016 400 Mauritius Africa Asia MUR 'M 300 200 20% 32% 100 48% - Textile Hotels and Resorts Finance Agro and Property Healthcare (100) H1 2015-16 H1 2016-17 12
CLUSTER REVIEW
CIEL Agro and Property Half-Year ended 31 December 2016 2015 Variance Income Statement MUR M MUR M MUR M Revenue 40 38 2 EBITDA 23 17 6 Profit before tax 106 44 62 Profit after Tax 105 42 63 Creation of CIEL Agro and Property Ltd consisting mainly of investments in Alteo, Ferney (Agricultural land owning company & sponsor of La Vallée de Ferney), Ebene Skies (Investment Property) and CIEL Properties (Property & Asset Management) ALTEO: Agri and Sugars results sector boosted by increased sales volumes and higher sugar prices Growth potential of the sugar sector in Africa Energy operations driven by higher offtake and better bagasse quality Property & Hospitality results adversely affected by closure of Anahita Golf & Spa Resort for refurbishment whilst Amalthea Residences phase reached nearcompletion 14
CIEL Textile Half-Year ended 31 December 2016 2015 Variance Income Statement MUR M MUR M MUR M Revenue 5,442 5,537 (95) EBITDA 533 569 (36) Profit before tax 371 441 (70) Profit after Tax 309 373 (64) Woven cluster - main contributor to CIEL Textile s profitability Continuously evolving market conditions for Knits and Knitwear operations Focus on operational excellence in CIEL Textile factories Order books for second semester expected toshowmarginal improvement Launch of Knits operations in India Restructuring costs of Knitwear operations in the region 15
CIEL Hotels and Resorts Half-Year ended 31 December 2016 2015 Variance Income Statement MUR M MUR M MUR M Revenue 2,907 2,342 565 EBITDA 510 358 152 Profit before non-recurring items and tax 59 (34) 93 Non-recurring items (124) (349) 225 Profit after Tax (54) (326) 272 Increase in revenue due to an improved room inventory with the re-opening of The Four Seasons Resort at Anahita, The Shangri-La s Le Touessrok Resort and Spa and in December 2016 of The Kanuhura in the Maldives Drop in losses due to improved operating performance and completion of renovation programmes Closure and other non-recurring charges have started to recede Successful private placement of multicurrency note programme of MUR 5 billion in early November Stabilisation of finance costs with interest savings from bond issue Encouraging occupancy and continuing room rate growth expected Challenges of repositioning Kanuhura in highly competitive environment 16
CIEL Finance Half-Year ended 31 December 2016 2015 Variance Income Statement MUR M MUR M MUR M Revenue 1,048 941 107 EBITDA 391 381 10 Profit before tax 392 401 (9) Profit after Tax 320 331 (11) 11% growth in revenue with slight decrease of 3% in Profit after Tax (PAT) driven by a one-off profitable exit recorded by Kibo Fund 1 in 2015 Continuous improvement of BNI Madagascar s operations with in-depth process review and replacement of core banking system Higher net fees and commissions and well-contained expenses at Bank One MITCO better performance with focus on strategic plan and competitive positioning in challenging local and global environment Adverse effect of foreign exchange rates on BNI in Madagascar 17
CIEL Healthcare Half-Year ended 31 December 2016 2015 Variance Income Statement MUR M MUR M MUR M Revenue 696 640 56 EBITDA 116 94 22 Profit before tax 69 49 20 Profit after Tax 49 34 15 Increased contribution from The Medical and Surgical Centre Ltd ( MSCL ) and the International Medical Group ( IMG ) in Uganda Improved revenue and net profit at IMG despite depreciation in Ugandan Shilling. Positive perspective with new management teamand betterreporting system CIEL Healthcare s acquisition of Apollo Bramwell Hospital s business operations through subsidiary, MSCL, on 20 January 2017 Group s commitment to delivering high quality healthcare services in hightechnology and caring environment Hygeia Nigeria Limited ( HNL ), Nigeria affected by substantial depreciation of the Naira, high inflation rates and economy in recession 18
Focus on CIEL HEALTHCARE
494 Operational Beds 5 34 +150 Additional bedded capacity 1 Hospitals 40 Clinics Accredited Testing Laboratory 3 Presence in - Mauritius - Uganda Countries - Nigeria Main Investments 2 HMOS providing medical schemes covering ~325,000 lives More than 2,400 employees International Partners ` 58.60% 90.10% 22.81% 35% Above key figures include ex-apollo Bramwell Hospital
Key Milestones Jan 2009 Jun 2013 Aug 2013 CIEL Group enters into strategic partnership with Fortis Healthcare with direct holding of 29.80% in The Medical and Surgical Centre Limited ( MSCL ) Incorporation of CIEL Healthcare Limited ( CHL ) CHL incorporates Laboratoire International de Bio-Analyse Limitée ( LIBA ) Apr 2015 Jul 2015 Dec 2015 CHA enters into an Advisory and Business Support Agreement with Fortis Healthcare CHL acquires a majority stake of 90.10% in International Medical Group ( IMG ) in Uganda CHL opens its capital to IFC, a member of the World Bank Group, and PROPARCO, a subsidiary of Agence Française de Développement ( AFD ) Sep 2013 Jun 2014 Oct 2014 Incorporation of CIEL Healthcare Africa Limited ( CHA ) CHL opens LIBA s capital to other investors with CHL holding 35% of LIBA CHL increases direct shareholding in MSCL to 44.93% which gives CHL effective control over MSCL Jan 2016 CHL completes equity investment of $16 million in Hygeia Nigeria Limited, Nigeria s leading private healthcare company for a 22.81% stake. This equity investment is along side a consortium of investors led by IFC, a member of the World Bank Group, together with IFHA-II (Investment Funds for Health in Africa) and Swiss Re, the Global Reinsurance company, which together hold 94.51% in HNL CHL increases its stake from 44.93% to 58.60% in MSCL Mar 2015 Apr 2016 Jan 2017 Entry of IFHA-II and TKF II, both private equity funds focused on Africa into the shareholding of CHL CHL, through its subsidiary MSCL, acquires the business operations of Apollo Bramwell Hospital ( ABH ) 21
A Strong Shareholder Base CIEL 53.88% IFC 14.31% Proparco 10.60% IFHA-II 10.60% TKF-II 10.60% CIEL Healthcare Limited 22
Portfolio CIEL Healthcare Limited ( CHL ) is a Mauritian registered company, with a prime objective to own, operate and manage assets in the healthcare sector in the Indian Ocean region and across Sub-Saharan Africa CIEL Healthcare Limited The Medical and Surgical Centre Limited 58.60% International Medical Group 90.10% Hygeia Nigeria Limited 22.65% * Laboratoire International de Bio Analyse 35% CIEL Healthcare Africa Limited 100% * As at 31/12/16 23
Strategic Partner Fortis Healthcare Presence in Mauritius 4 India 54 Healthcare Countries Sri Lanka facilities Bangladesh 10,000 Bedded capacity 314 Diagnostic centres 24
Key Investment Fortis Clinique Darné (Mauritius) 60,000 + Interventional procedures in the last decade 112 Bedded-capacity 1 satellite clinic ~USD 42Mn Listed on the DEM Market Capitalisation 25
Key Investment International Medical Group (Uganda) Hospital Clinics Work site 1 13 8 clinics 1 HMO 100 Bedded-capacity 11 Bedded Intensive care Unit +50,000 Lives covered Only COHSASA* accredited hospital in East Africa Largest clinic network in Uganda Awarded best international hospital in Uganda by International Health Commission * The Council for Health Service Accreditation of Southern Africa 26
Key Investment Hygeia Nigeria Limited (Nigeria) 2 3 Hospitals clinics 9 Worksite clinics 82 Bedded-capacity 1 HMO +275,000 Lives Covered The only Joint Commission International (JCI) accredited hospital in Nigeria Awarded best international hospital by International Health Commission Africa best rated HMO at the ADM National Development Forum 27
Key Investment Ex-Apollo Bramwell Hospital ( ABH ) (Mauritius) 1st hospital to be accredited by the Joint Commission International (JCI) in the region State-of-the-art equipment 680 employees 200 Bedded-capacity Local & international expertise in over 40 specialties 28
Strategic Approach re ex-abh Purchase of assets (excluding land and building) and acquisition of business operations Operations overseen by Fortis Healthcare but run separately from Fortis Clinique Darné Plan to turnaround operations underway leveraging on potential synergies between local operations Rebranding exercise ongoing 29
Priorities for 2017/18: Focus on consolidation and operational excellence New key managerial personnel in place to bolster operational capabilities Decongestion of Fortis Clinique Darné to enable growth in terms of specialties Turnaround of ex-abh operations remains key and plan is underway Focus on creating synergies across local operations in Mauritius Continuous focus on improvement of operations in both Uganda and Nigeria Leveraging on IT systems to improve data processing and quality of reporting 30
MOVING FORWARD
Capitalise on recent investments (1) New factory for Aquarelle in India New factory for Tropic in India Reorganisation of Floreal Knitwear with new automated factory in Antsirabe, Madagascar Acquisition of BNI Madagascar with objective to be a leader by 2020 32
Capitalise on recent investments (2) Investments in hotels renovation (Kanuhura, Shangri-La Le Touessrok Resort and Spa, Ambre, Four Seasons, La Pirogue) 100% Acquisition of the Four Seasons at Anahita The Medical and Surgical Centre Limited, Mauritius International Medical Group (IMG), Uganda Hygeia Nigeria Limited, Nigeria Ex-Apollo Bramwell Hospital, Mauritius New sugar factory in Kenya through Alteo Ltd Power plant project in Mauritius through Alteo Ltd 33
Focus on operational excellence to drive profitability Hands-on approach to overseeing operations Investment in top talent to drive growth Recruitment of Chief Officer, Operational Excellence Encourage and increase group-wide cross-fertilisation of best practices 34
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